Want to Raise Money With Crowdfunding? Consider These Tips

The law that President Obama is set to sign this week is expected to unleash a wave of crowdfunding. That promises to give some startups access to capital they wouldn’t have had otherwise, but it could set up unwary entrepreneurs for a headache. Crowdfunding is a way of raising capital that involves getting small amounts of money from a large number of investors. A new law, called the JOBS Act, changes the formerly donate-to-my-cause-for-a-tote-bag industry into a popular way for small companies to raise the cash in two ways: It allows businesses to raise money from investors in exchange for a piece of their company (equity) and it allows non-accredited investors (regular Joes and Janes like your neighbor and Grandma) to sink their own cash into startups. Read it here.